950809

Aluminium at lows, other

metals mixed on LME

LONDON: Aluminium prices eased to the lows at the end of the afternoon kerb on the London Metal Exchange (LME) on consistent speculative selling.

But traders said volumes were extremely thin on all metals, and not too much should be read into today's movements.

"The markets all finished fairly flat but volumes have been very disappointing," one trader said.

Aluminium ended the afternoon kerb at $1,917 a tonne, unchanged on the day but $11 off the highs. Producer buying met speculative selling, But the lack of follow-through sales meant technical support at $1,917 held.

News that Netherlands producer Hoogovens said it was preparing to put 42,000 tonnes idled production capacity back on stream next year weighed on values slightly.

Traders expect capacity to be expanded and reactivated in 1996 to meet rising demand, but any confirmation of this is likely to have a short term negative impact, dealers explained.

But the market remains generally bullish for aluminium in the medium term, with most analysts forecasting another supply deficit next year, albeit one smaller than in 1995.

Copper finished $8 higher at $2,943 after failing to maintain its rally above near-term resistance around $2,950.

Spreads were little moved, but have eased during the past few weeks. Cash held a $60 premium over three months delivery prices at the close, against around $100 10 days ago.

Tin was thinly traded and ended at $6,980/90, against Tuesday's afternoon kerb close of $6,940.

Trade selling again kept the recent rally in check, as did easing spreads. Cash fell to a $50 premium over three months compared with $70/80 late Tuesday.

Lead and zinc were quiet. News that Pasminco workers staged another 24-hour strike was supportive, as was uncertainty over the outcome of a strike vote at Mount Isa on Thursday.

Zinc ended unchanged at $1,034 while lead fell by $4 to $633.

Lead ended on trendline support based on a line joining the lows of May 11, July 21 and August 9. Next chart support is pegged at $623.

Nickel eased back $45 to finish at $8,955.

Alloy was last quoted at $1,730/50 versus $1,740/50 Tuesday.-Reuter